NS & I savings certificates index linked

Albermarle

Just received my first statement using CPI instead of RPI .
May 2019 to May 2020  + 0.55% ( + 0.01% interest ) 
Not quite as attractive a product as they used to be....

Shedman

RPI ones weren't a huge amount better ...just got our annual statements for same period..1.03% plus the 0.01% interest.  One more year to go.  

myfyr

Nothing else guaranteed to maintain the real value of cash savings though. Wish they would issue another tranche.

A_T

myfyr said:

Nothing else guaranteed to maintain the real value of cash savings though. Wish they would issue another tranche.

No chance. Thousands would die in the stampede to buy them. Anyone who has any of these can count themselves fortunate.

83705628

Albermarle said:

Just received my first statement using CPI instead of RPI .
May 2019 to May 2020  + 0.55% ( + 0.01% interest ) 
Not quite as attractive a product as they used to be....

Albermarle said:

Just received my first statement using CPI instead of RPI .
May 2019 to May 2020  + 0.55% ( + 0.01% interest ) 
Not quite as attractive a product as they used to be....

/
Oh I'm sorry is inflation-linked risk-free saving without interest rate risk or the volatility of inflation linked gilts not good enough for you?

Albermarle

tcallaghan93 said:

Albermarle said:

Just received my first statement using CPI instead of RPI .
May 2019 to May 2020  + 0.55% ( + 0.01% interest ) 
Not quite as attractive a product as they used to be....

Albermarle said:

Just received my first statement using CPI instead of RPI .
May 2019 to May 2020  + 0.55% ( + 0.01% interest ) 
Not quite as attractive a product as they used to be....

/
Oh I'm sorry is inflation-linked risk-free saving without interest rate risk or the volatility of inflation linked gilts not good enough for you?

Just making the point that the change to CPI from RPI can now be seen in reality . No need for the aggressive response !

Aminatidi

I haven't paid a huge amount of attention to mine but I just logged in and it says:

"RPI Index-linking + 0.01% AER"

Do they flip to CPI if you renew them?

ColdIron

Yes, they are different issues. My Issue 53 renewed May 2016 are RPI. Certificates renewed from 1st May 2019 will use CPI

badger09

ColdIron said:

Yes, they are different issues. My Issue 53 renewed May 2016 are RPI. Certificates renewed from 1st May 2019 will use CPI

IanManc said:

Albermarle said:

Just received my first statement using CPI instead of RPI .
May 2019 to May 2020  + 0.55% ( + 0.01% interest ) 
Not quite as attractive a product as they used to be....

................................
They're still attractive, but as you say, not quite as attractive.  

@ColdIron
Same as me

@ IanManc
Same as me

lhsecons

tcallaghan93 said:

Haha not being aggressive just pointing out that it's a f****** good deal

Maybe over a period. Clearly this year it hasn’t been as the rate is less than half that available on income bonds!!!

bowlhead99

lhsecons said:

tcallaghan93 said:

Haha not being aggressive just pointing out that it's a f****** good deal

Maybe over a period. Clearly this year it hasn’t been as the rate is less than half that available on income bonds!!!

Well, they're not bought to get the best rate in town every year, they're bought to avoid your money being eroded in value in real terms by inflation over a three to five year period. The income bonds are only guaranteed to pay 1.16% over the next few months (and it's a variable rate so maybe less over the rest of the year if there isn't sufficient political will to keep them paying so high), while you don't know what the inflation rate's going to be over the next year or three or five.

So looking back a year and noting that petrol dropped in price by x% and energy bills dropped by y% and household goods and clothes dropped in price by z% since June 2019 - meaning that it didn't take a high interest rate to 'beat' inflation over the last year - shouldn't be taken to imply that the promise to preserve your spending power in CPI terms is not a great deal. Unless you think perhaps that all those things are going to keep falling in price at the same rate as they did over the last year and the other things like food, council tax, transport etc won't be going up.